CAN is printing a Broadening Bottom Megaphone pattern on the CAN daily chart; the RSI looks to be increasing on the price lows indicating increased momentum.
Zooming out it also looks like an accumulation pattern has been forming over the past several months.
The megaphone may work as the "Spring / Test" stages for Phase C if it plays out and bring the price back...
Holding that critical level there at 4.55, looking left, a backtest of this level here leads to substantial upside to the likes of 400%. Real nice consolidation taking place with bullish divergence on the Daily. I think all its going to take is a strong move from Bitcoin to really get some of these sympathy/mining stocks running.
Net revenue in Q4 increased by more than 5,700%;
Gross profit of $233 million VS last year's profit of $1.4 million;
Full year net revenue of $783 million VS $70 million for 2020;
Net income $314 million VS $34 million loss the year prior;
CAN Canaan 8.87 P/E Ratio (TTM).
Based on financials and technical analysis, i think $7.25 and $10.10 are possible targets.
Technicals: RSI is oversold and looks like it is reversing. The price has also reached a long term support of around $4.6.
Fundamentals: Canaan stock has a high correlation with the price of Bitcoin as they produce the hardware to mine Bitcoin. The market cap is under $850 million. The bullish news is the sale of 30000 of their flagship Avalon mining kits to...
CAN is forming higher high and higher low. Uptrend. For validation, EMA line started to form golden cross.
But do take note, currently hitting resistance line at 10.60. Monitor for breakout pattern.
Risk/Reward Ratio seems promising.
Disclaimer: It's my personal opinion. It is not meant to be a recommendation to buy or sell securities :)
we were clearly being held back by the top trendline resistance for the past few months.
today we are finally breaking through that trendline resistance, now if it breaks the blue zone above it may go for a parabolic breakout to 20+
over 10.5/11.5 we can target 14.63/18.03/20.08
Potentially due to the recent fall in cryptocurrencies, CAN is putting in what looks to be an Inverse H&S pattern that could target a price near $18 per share. With so many great technologies being developed, not only for crypto mining, but other Artificial Intelligence technologies, could send price to new ATH's.
RSI says great buy
It seems as if we have completed the retracement after the impulsive wave.. As long as Bitcoin continues to show strength we can expect a nice move towards the upside.
$CAN Daily looks ready to break out of this reversal pattern (IHS), the weekly chart shows MACD crossover, and we are seeing nice accumulation during our last sessions.. Here are a couple targets I set for this swing play.
- daily chart currently show inverse head and shoulder pattern.
- DMI indicating strong uptrend.
- Stoch indicating few more days of upward movement until it enter overbought region.
- high probability to break out next week.
- break out is confirmed if the volume is significantly higher from previous trading day.
"Market is always right"
